Muthoot FinCorp plans to raise up to ₹4,000 crore through an IPO of equity shares
The company has also approved a stock split and multiple debt fundraising proposals
The board also cleared multiple fundraising routes, including NCDs, debentures and commercial papers
Muthoot FinCorp Eyes ₹4,000 Cr IPO; Board Clears Stock Split
The financial services company has also approved stock split and fundraising plans through NCDs and commercial papers alongside its proposed public issue
Summary
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Muthoot FinCorp on Saturday announced that its board has approved a proposal to launch an initial public offering (IPO) worth up to ₹4,000 crore. The issue will consist of a fresh issue of equity shares with a face value of ₹10 each.
The company said the proposed IPO will be subject to shareholder approval, regulatory clearances and prevailing market conditions. The move marks a significant step in the company’s expansion and capital-raising strategy.
Muthoot FinCorp is among India’s leading non-banking financial companies (NBFCs), with a strong presence in the gold loan and financial services segment.
Stock Split and Fundraising Plans
Alongside the IPO proposal, the board also approved a stock split aimed at improving liquidity and retail participation. Under the plan, every equity share with a face value of ₹10 will be split into five shares with a face value of ₹2 each.
The company further cleared a proposal to raise up to ₹4,000 crore through public issuance of non-convertible debentures (NCDs) between July 2026 and June 2027.
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In addition, Muthoot FinCorp plans to mobilise another ₹4,000 crore through private placement of debentures, perpetual debt instruments and subordinated debt, subject to shareholder approval.
Commercial Paper Issuance Cleared
The board also approved fundraising through commercial papers to support business requirements and liquidity management.
Under the plan, the company can issue commercial papers up to a total limit of ₹30,000 crore, with a maximum outstanding limit of ₹10,000 crore at any point in time.
The Stock Allotment Committee has been authorised to oversee matters related to issuance and allotment of securities.
FY26 Financial Snapshot
The company reported strong financial growth during FY26, supported by higher revenue and profitability. The company’s assets under management (AUM) stood at ₹56,185.10 crore as of March 2026.
Its standalone business posted a profit after tax (PAT) of ₹1,640.21 crore and revenue of ₹8,364.28 crore during the financial year.
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For the fourth quarter of FY26, consolidated PAT rose 204% year-on-year (YoY) to ₹664.03 crore, while revenue increased 32% to ₹3,355.97 crore.
Muthoot FinCorp Chairman and Managing Director Thomas John said the company remains focused on building a future-ready institution driven by innovation, customer trust and long-term value creation.
He added that Muthoot FinCorp will continue expanding access to simple and reliable financial solutions while strengthening relationships with customers, partners and stakeholders across the country.